The Boohoo share price has risen in the past two consecutive weeks as investors’ price in a recovery of the company. As a result, it has risen to 99p, which is substantially higher than this month’s low of 64p. Still, it remains substantially below its all-time high of 433p.
As investors attempt to buy the dip, boohoo has risen in the past two weeks. Besides, it is one of the best-known fashion brands in the UK and is recording some growth. Further, the company managed to buy the digital platforms of Debenhams for a relatively low price, meaning that it will likely reap big profits in the future.
Boohoo latest news
Boohoo share price is rising as bulls start pricing in a possible acquisition of the company. In addition, rumours have been flying around that some private equity companies would be willing to take the company private and merge it with other companies in the industry. Still, there has been no confirmation about this.
Another possible catalyst for the Boohoo stock price is that it is extremely cheap. Analysts have an average target of 329p, which is significantly above its current level. Also, unlike many companies in its situation, many insiders have not sold their shares. This is probably because they are optimistic about the company.
Still, Boohoo faces a tough time ahead. The company’s margins are thinning because of the rising cost of doing business while its revenue growth is slowing as more people move to shop in stores. It is also facing stiff competition from the likes of Asos and Shein.
Boohoo share price forecast
The daily chart shows that the Boohoo share price has been in a strong bearish trend in the past few months. Recently, however, it has shown some signs of bottoming by rebounding. Still, it remains below the 50-day and 100-day moving averages. This signals that sellers are still in control. Therefore, there is a likelihood that the BOO share price will resume the bearish trend in the next few weeks. This view will be invalidated if the price manages to move above the 50-day and 100-day moving averages.
